Election sop: Govt announces pension for PSIC employees

New Delhi, Mar 2: With an eye on 2019 General elections, the Union Government on Saturday announced another sop for employees of Public Sector Insurance Companies, giving them one more opportunity to opt for pension after retirement.

“To mitigate the hardship of such employees of whom many have retired, Government has decided as a welfare measure, to allow one more opportunity to employees of PSICs who joined service on or before 28 June 1995, to opt for the pension scheme of their respective organisations, in lieu of Contributory Provident Fund,” the Finance Ministry said in a statement here.

This decision is expected to benefit 42,720 employees (serving and retired) of which 24,595 are of LIC and 18,125 of PSGICs

The pension mechanism was introduced as a retirement benefit in PSICs with effect from June 28, 1995.

In April 1997, employees of LIC and Public Sector General Insurance Companies namely, GIC, NICL, OICL, UIICL and NIACL, who joined service on or before 28 June 1995 were given another opportunity to opt for pension, as a retirement benefit.

However, many eligible employees could not exercise the option and there had been a long standing demand from them to get another option. (UNI)